German Government and Telecom Industry Sign Agreement to Invest 10.9 Billion Euros in Network Expansion
2026-06-09 11:20
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en.Wedoany.com Reported - Germany’s federal, state, and local governments, along with network operators, held a high-level summit at the Federal Ministry for Digital and Modernization (BMDS) in Berlin, jointly signing a Memorandum of Understanding (MoU) on "Germany's Best Network" aimed at accelerating the country's network infrastructure development.

The agreement was signed by Federal Digital Minister Karsten Wildberger (CDU), representatives from all levels of government, CEOs of major telecommunications companies, and industry association representatives. Wildberger stated that the goal is to achieve significant progress in fiber optic and mobile network expansion by increasing speed, reducing bureaucracy, and providing reliable framework conditions, while using specific indicators to transparently track progress and bind investment and approval processes.

Karsten Wildberger (CDU), Federal Minister for Digital and Modernization, at the BMDS Academy Dialogue 'Effective State Modernization'

According to the memorandum, the telecommunications industry has made substantial financial commitments: in 2026 alone, approximately 8.5 billion euros are planned for fiber optic expansion and 2.4 billion euros for mobile networks. That year, 3.2 million directly usable fiber optic connections (Homes Connected) and 2.5 million pre-connected homes (Homes Passed) are expected. For 2027, at least 6.6 billion euros are planned for fiber optics and 2.4 billion euros for mobile communications.

To ensure targets are met, the alliance will conduct semi-annual performance reviews based on Key Performance Indicators (KPIs), including actual expansion progress, investment amounts, and administrative approval processing times. Data will primarily come from the Federal Network Agency (BNetzA) to avoid increasing bureaucratic burdens on companies. The memorandum also grants the Federal Network Agency a new supervisory function: in standardized procedures, the agency can receive feedback from municipalities on the professional competence and reliability of construction or telecommunications companies and initiate further reviews.

The industry has committed to "Open Access," meaning non-discriminatory network access, allowing providers to use the same infrastructure for their services. This aims to promote end-user competition, reduce investment risks, and increase utilization of newly built networks. On the public sector side, states and municipalities have pledged to accelerate approval processes and promote digitalization, such as fully deploying standardized digital applications like the OZG broadband portal to shorten project processing times.

Bitkom President Dr. Ralf Wintergerst stated that the document highlights areas needing improvement in network expansion. He noted that it takes an average of over three years from planning to completion of a new mobile communications base station, with the site selection phase averaging 16 months, approval processes about 10 months, and power connection potentially up to one and a half years. Although 5G already covers nearly all households and about 95% of the area, with over 80% of households having access to gigabit connections, lengthy procedures and a lack of base stations and power connection sites remain expansion challenges.

ANGA President Thomas Braun and his deputy Timo von Lepel believe the document adequately considers the interests of all parties but emphasize that stakeholder dialogue cannot replace legislation and regulation. Von Lepel pointed out that the government draft of the Telecommunications Act amendment needs improvement, particularly as the expansion of symmetrical access obligations could hinder fiber optic expansion investments.

BREKO Vice President Karsten Kluge considers the memorandum a good foundation for further cooperation, hoping that regular stakeholder dialogue will eliminate bureaucratic obstacles, promote market-driven open access cooperation, and reduce duplicate construction. 1&1 Versatel CEO Frank Rosenberger supports the common goal of building high-performance fiber optic and mobile networks, advocates for accelerating digital approval processes, and demands non-discriminatory access to passive network infrastructure.

VATM President Valentina Daiber called the memorandum a strong signal, stating that all participants are taking responsibility for digital infrastructure expansion, and that only with faster procedures, simpler processes, and more reliable framework conditions can Germany become a leading country for high-performance networks. Deutsche Telekom welcomed the memorandum but opposed the exclusion of copper-based cable networks from discussions, noting that providers like Vodafone could serve as references for shutting down these networks. Vodafone Germany CEO Marcel de Groot advocated focusing on accelerating approval processes.

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